Slide 1: FY21/12 Results Briefing
Tokyo Stock Exchange First Section 6143 FY21/12 Results Briefing Sodick Co., Ltd. February 18, 2022
Slide 2: Table of Contents
Table of Contents I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 2
Slide 3: I. FY21/12 Financial Results Summary
I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 3
Slide 4: Financial Results Highlights
Financial Results Highlights The increase in sales of EDMs in Greater China led the overall increase. Sales in Japan, the West and Asia also recovered, exceeding full-year projections. In terms of profits, profitability at plants improved as production volume increased. Non-operating income incr
Slide 5: Financial Results Highlights (Quarterly)
Financial Results Highlights (Quarterly) Net sales in the 4Q increased from the 3Q due to recovery in Japan, the West and Asia. In terms of profits, operating income margin decreased from the 3Q due to an increase in SG&A expenses such as personnel expenses and sales promotion expenses related t
Slide 6: Ratio of Operating Income to Net Sales (Quarterly)
Ratio of Operating Income to Net Sales (Quarterly) Machine tools Industrial machinery Net sales Food machinery Others • Sluggish sales of EDMs due to trade Sales decreased due to the Operating income margin friction between the U.S. and China. spread of COVID-19. Recovery is seen in Greater Sales of
Slide 7: Details of Changes in Operating Income
Details of Changes in Operating Income Gross profit increased significantly, as unit sales increased. There were also increases in personnel expenses, sales commissions and transportation costs associated with increased sales, and sales promotion and advertising costs associated with exhibitions
Slide 8: Financial Results by Segment
Financial Results by Segment FY20/12 FY21/12 YoY change FY21/12 (million yen) Full-year projection (Revised on Aug. 6) Actual Actual (Amount) (Rate) Machine tool segment 38,024 51,485 13,461 35.4% 48,600 Industrial machinery 10,931 10,367 -563 -5.2% 10,500 segment Food machinery 3,585 6,884 3,298 92
Slide 9: Financial Results by Segment: Machine Tool Segment
Financial Results by Segment (million yen) ■ Machine Tool Segment Net sales (Quarterly) Net sales 16,000 14,237 • In Greater China, sales of automotive, electronic 13,362 13,762 13,102 components, 5G, and semiconductor fields 12,000 11,054 11,706 11,298 10,382 10,081 remained strong. Sales also have
Slide 10: Financial Results by Segment: Industrial Machinery Segment
Financial Results by Segment (million yen) ■ Industrial Machinery Segment Net sales (Quarterly) Net sales 4,000 3,438 • Medical services in North America 3,029 2,885 2,759 2,729 2,734 continued to perform well. Sales to 3,000 2,320 2,531 2,556 2,300 automotive and electronic components 1,892 1,893 2
Slide 11: Financial Results by Segment: Food Machinery Segment
Financial Results by Segment (million yen) ■ Food Machinery Segment Net sales (Quarterly) Net sales 3,000 2,813 • There are continuing projects related to demand 2,541 for sanitary equipment and equipment for responding to manpower reduction and for nest- 1,940 1,820 dweller consumption resulting fr
Slide 12: Financial Results by Segment: Other Segments
Financial Results by Segment (million yen) ■ Other Segments Net sales (Quarterly) Net sales 2,000 1,781 1,748 • Demand for ceramics continues owing to 1,701 1,526 increased demand for information and 1,500 1,369 1,346 1,453 1,353 1,351 1,330 1,460 1,240 communications equipment, etc. • In the precis
Slide 13: Net Sales by Segment
Net Sales by Segment Sales of maintenance services and consumables increased in all segments owing to an improvement in machine operating rates. Quarterly trends in maintenance services Breakdown of machinery sales/maintenance service and consumables sales (million yen) and consumables Machine too
Slide 14: Ratio of Overseas Sales by Segment
Ratio of Overseas Sales by Segment The ratio of overseas sales exceeded 70% owing to increased sales of EDMs in Greater China as well as increased sales of food machinery in Greater China and Asia. (million yen) 35,000 Japan North and South America Europe Greater China Asia 30,000 Others 25,000 Fo
Slide 15: Balance Sheet
Balance Sheet Results of conversion of "The first series of unsecured convertible Inventories increased significantly due to an increase in work in bond-type bonds with subscription rights to shares"(*) into new process and raw materials as a result of advance arrangements in shares (redemption da
Slide 16: Financial Indicators
Financial Indicators The CB conversion in April 2021 resulted in net cash plus and debt-to-equity ratio of 0.5 times and equity ratio of over 55%. Fluctuation in interest-bearing debt, net cash, and dept-to-equity ratio (times) (million yen) Interest-bearing Dept-to-equity Convertible bonds with N
Slide 17: Cash Flow
Cash Flow (million yen) FY20/12 FY21/12 Major factors for increase and decrease Profit before income taxes: + Approx. 8,500 million yen Cash flows from operating 5,270 7,642 Increase in notes and accounts payable-trade: + Approx. 4,800 million yen activities Increase in advances received: + Approx.
Slide 18: Facility Investments / Depreciation / R&D Expenses
Facility Investments / Depreciation / R&D Expenses Changes in facility investments / depreciation (million yen) Facility 設備投資 減価償却費 Depreciation Major facility investments investments 10,000 (FY21/12) Expansion of the second plant in 8,000 8,576 Thailand 6,000 6,561 Construction of a new factory
Slide 19: II. FY22/12 Financial Results Projections
I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 19
Slide 20: Market Environment
Market Environment Japan Despite concerns over the impact of the COVID-19 outbreak, demand is expected for the replacement of aging equipment as well as next-generation automotive and 5G-related industries, in addition to government’s subsidy policies. The West The aerospace industry is expected to
Slide 21: JMTBA Machine Tool Orders
200 400 600 800 1,000 1,200 0 100 150 200 0 50 1-3月 Jan.–Mar. 1-3月 Jan.–Mar. 4-6月 Apr.–Jun. Apr.–Jun. 4-6月 2016 2016 Jul.–Sep. 7-9月 2016年 Jul.–Sep. 7-9月 2016年 Oct.–Dec. 10-12月 Oct.–Dec. 10-12月 1-3月 Jan.–Mar. 1-3月 Jan.–Mar. 4-6月 Apr.–Jun. Apr.–Jun. 4-6月 2017 2017 Jul.–Sep. 7-9月 Jul.–Sep. 7-9月 2017年 2
Slide 22: FY22/12 Full-year Financial Results Projections
FY22/12 Full-year Financial Results Projections Although the machine tool segment decreased slightly, net sales increased in the segments other than machine tools, and overall net sales are expected to be 77,900 million yen. The operating income margin remained unchanged from the previous fiscal
Slide 23: FY22/12 Projections (by Segment)
FY22/12 Full-year Financial Results Projections (by Segment) Machine tool segment Industrial machinery segment While demand for high-precision equipment is expected to Strong sales in Japan and Greater China for automotive, electronic increase in the automotive, semiconductor and 5G-related comp
Slide 24: Projections for Facility Investments / Depreciation / R&D Expenses
Projections for Facility Investments / Depreciation /R&D Expenses FY22/12 plan (million yen) Facility 設備投資 investments 減価償却費 Depreciation 5,000 3,500 4,100 million yen (up approx. 650 million yen YoY) 4,000 3,399 3,452 Facility 3,000 • Construction of a new factory in Amoy Plant investments • Expans
Slide 25: III. Medium- and Long-term Management Plans and Business Strategies
I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 25
Slide 26: Long-term Management Plan Next Stage 2026
Long-term Management Plan In February 2019, we announced our long-term management plan Next Stage 2026 covering the period from 2019 to 2026. Each division will take measures to achieve the plan. Next Stage 2026 Product expansion period ~Toward Further Growth~ • Expansion of elemental technologies F
Slide 27: Corporate Transformation to Achieve Long-Term Plan (CX)
Corporate Transformation to Achieve Long-Term Plan (CX) Changed to a new organizational structure in January 2022. Shifting from a functional organization to a business-based organization in order to achieve optimal and prompt business execution by having each division have authority and responsib
Slide 28: Medium-term Management Plan
Medium-term Management Plan Targeting net sales of 89,600 million yen with operating income of 9,100 million yen by FY24/12 (million yen) 工作機械 Machine 産業機械 Industrial 食品機械 Food その他 Others 営業利益 Operating (million yen) tools machinery machinery income 100,000 20,000 89,600 Operating income 82,700 9,40
Slide 29: Management Strategies: Machine Tool Segment
Management Strategies by Business Segment (Machine Tool Segment) Objectives of Machine (million yen) Net sales Tool yen with operating income of ● million yen by FY24/12 Targeting net sales of ● million Segment 60,000 58,607 51,485 51,200 53,400 56,500 45,797 Sales strategies 38,024 • Offer comprehe
Slide 30: Management Strategies: Industrial Machinery Segment
Management Strategies by Business Segment (Industrial Machinery Segment) Objectives of Industrial (million yen) Net sales Machinery Segment 15,000 13,700 11,155 11,600 10,931 10,367 10,800 Sales strategies 9,773 10,000 • Sales promotion of electric injection molding machines • Expanding sales of ver
Slide 31: Management Strategy: Food Machinery Segment
Management Strategy by Business Segment (Food Machinery Segment) Objectives of Food (million yen) Net sales Machinery Segment 15,000 10,000 Sales strategies 9,200 10,000 8,200 • Establishment of three pillars of noodle making 6,560 6,884 6,283 machines, rice production equipment, and equipment for p
Slide 32: Management Strategy: Other Segments
Management Strategy by Business Segment (Other Segments) Objectives of Other (million yen) Net sales Segments 15,000 9,400 10,000 8,500 7,700 6,392 6,437 Expanding sales channels and improving 5,737 5,488 5,000 profitability in the precision die and molding business • Expanding sales channels other
Slide 33: ESG: Strengthening our Management Bases
Strengthening our Management Bases Management Bases Targeting net sales of ● million yen with operating income of ● million yen by FY24/12 E nvironment S ocial Promotion of environmentally friendly products Health management • Development of products that reduce greenhouse gas • Establishment of a h
Slide 34: Health Management
Health Management Sodick Health Management Declaration Health management policy Sodick believes that the health of its employees is 1. With the President and Representative Director serving the company’s most important asset and a source of as the Chief Executive Officer for Health Management new va
Slide 35: Review of Long-term Management Plan and Financial Policy
Review of Long-term Management Plan and Financial Policy We will work on business management and business growth with an awareness of capital efficiency, and actively invest for sustainable growth. Maintain financial soundness We will implement shareholder returns that take into account perfor
Slide 36: IV. Shareholder Return
I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 36
Slide 37: Shareholder Return Policy and Dividend Projection
Shareholder Return Policy and Divided Projection A new indicator of total return ratio was adopted. Strengthening shareholder returns through stable dividends and flexible capital policies through share buybacks Shareholder return policy Aim for DOE of 2% or more and total return ratio of 30% or
Slide 38: Acquisition and Retirement of Treasury Shares
Acquisition and Retirement of Treasury Shares Decided to purchase and retire treasury shares in order to enhance the value of shares through the enhancement of shareholder returns and the flexible capital policy in response to changes in the business environment Overview of acquisition of treasury
Slide 39: (References)
I. FY21/12 Financial Results Summary II. FY22/12 Financial Results Projections III. Medium- and Long-term Management Plans and Business Strategies IV. Shareholder Return (References) 39
Slide 40: References: Business Segment Composition and Major Products
References: Business Segment Composition and Major Products Segment Machine tools Industrial machinery Food machinery Die-sinker EDM Horizontal injection molding Noodle-making equipment Wire-cut EDM machine (Noodle production line) Sterile-packed cooked rice production system Small Hole EDM Metal 3D
Slide 41: References: Domestic and Overseas Sites
References: Domestic and Overseas Sites Head Office and Research and Technology Center Sodick F・T Miyazaki Plant Head Office Production site R&D Site Sales and Service Site Fukui Plant Sodick America Corporation (San Jose) Shanghai Sodick Software Sodick Suzhou Sodick Special Equipment Co., Ltd. Amo
Slide 42: References: Participation in Major Exhibits
References: Participation in Major Exhibits Period Location Exhibition Summary and Remarks 2022 Apr. 25 - 28 China Shanghai Chinaplas MEX Kanazawa May 19 - 21 Japan Kanazawa (The 58th Machinery & Electronics Exhibition in Kanazawa) Jun. 7 - 10 Japan Tokyo FOOMA JAPAN Food machinery exhibition Sep. 1
Slide 43: References: Web Exhibition and Official YouTube Channel
References: Web Exhibition and Official YouTube Channel Our website URL: https://www.sodick.co.jp/ Introducing our latest machines and technologies with a video at Sodick Web Exhibition A wide range of contents including our group's YouTube channel is also open! overseas sites is also availabl
Slide 44: References: New products and awards in 2021
References: New products and awards in 2021 Segment Machine tools Industrial machinery Metal 3D Printer Thermosetting rubber injection Injection molding system LPM325S molding machines INFILT-V® with degassing function GL-LSR Series The 18th The 64th Super Monozukuri Ten Great New Parts Award Produc
Slide 45: Disclaimer
Disclaimer This presentation material has been prepared exclusively for the purpose of providing information; the material was not created to advertise, solicit, market, etc., specific products or shares of the Company. The information included in this material is not required by the Financial Instr